Why does the government interfere with big company mergers?
Newsy
Mergers between grocery chains Kroger and Albertsons and airlines JetBlue and Spirit are the latest to face roadblocks from the federal government.
The government has stepped in on multiple big company mergers in recent years.
JetBlue and Spirit Airlines recently called off their merger agreement, weeks after losing a federal antitrust lawsuit.
And the Kroger-Albertsons merger, announced in 2022 with a target date of finalizing early 2024, is now facing legal challenges.
“Historically, the government has tried to, if you will, balance businesses' pursuit of profit with consumers' pursuit of low prices, lots of variety, convenience, et cetera,” said Dan Roccato, a clinical professor of finance at the University of San Diego.
In both cases, the companies argued that merging would allow them to be more efficient and pass on savings to customers.
